EV maker Lucid sliding on wider-than-expected 1Q loss

Shares of EV maker Lucid Group are down nearly 5% in premarket trading on Wednesday after the company reported first-quarter results. Its quarterly revenue rose 20% year over year, but it still came in well below Wall Street expectations. Lucid also withdrew its vehicle production guidance for 2026.

Lucid shares has fallen nearly 5% in premarket trading on Wednesday to $5.95 per share.

The decline followed the company’s release of first-quarter 2026 financial results. Revenue in January-March increased 20% year over year to $282.5 million, while the operating loss widened 43% over the same period to $989.5 million.

Both figures missed Wall Street expectations. Analysts had expected an operating loss of $864 million on revenue of about $358 million, Barron’s writes. The outlet said the EV maker is trying to increase sales in a difficult market.

Year to date, Lucid shares have plunged nearly 41%. A series of setbacks has undermined investor confidence in the EV maker, the Motley Fool wrote.

In early April, the company said it had produced 5,500 vehicles in the first quarter – 149% more than in the same period of 2025 – but delivered only 3,093 vehicles to customers, unchanged from the first quarter of last year.

The company explained that deliveries of the Lucid Gravity SUV were disrupted for 29 days due to a supplier issue involving second-row seats. At the time, Lucid said the issue had been resolved and reaffirmed its 2026 production guidance of 25,000-27,000 EVs.

That failed to ease investor skepticism, and in mid-April those concerns were reinforced, the Motley Fool wrote. On the same day, the company released three major announcements. The first was the appointment of new CEO Silvio Napoli. The second detailed a $550 million investment from an affiliate of Saudi Arabia’s Public Investment Fund and an additional $200 million investment from Uber Technologies. The third announced a $300 million common stock offering, bringing the total capital raise to approximately $1.05 billion.

While financing from key investors improves liquidity, shareholder dilution resulting from the stock offering typically weighs on share prices, the Motley Fool notes. The post also noted that PIF received convertible preferred stock in exchange for its investment, meaning existing shareholders could face further dilution if those securities are converted into common shares.

Amid the leadership transition, Lucid is no longer certain how many EVs it will produce and sell in 2026, CFO Taoufiq Boussaid said during the company’s earnings call, according to TechCrunch. He said the decision to withdraw the company’s annual guidance was a “governance decision” and that Napoli is conducting a review of the business. Lucid plans to provide an updated outlook during its next quarterly earnings call.

Wall Street remains cautious on Lucid’s outlook. The stock currently has eight “hold” ratings from analysts, alongside three “buy” and three “sell” calls. The average target price stands at $12.35 per share, nearly double the Tuesday closing price.